Cannabis-Rx CEO Provides Insights on How the Regulated Marijuana Industry is a New Niche for Real Estate Specialists

Llorn Kylo, CEO of Cannabis-Rx
(OTCQB:CANA), a real estate company focused on opportunistically
acquiring, selling/leasing real estate, and assisting in the growth of
the licensed cannabis industry specific to real estate and financing,
today shared his perspective on the opportunities offered to real estate
professionals by the regulated marijuana industry. Mr. Kylo's commentary
on the industry is as follows:

The continued growth of the licensed marijuana industry, or the "green
rush," has spawned no shortage of "ganjapreneurs" seeking suitable real
estate to operate and capital to grow their businesses.

From grow schools to security firms, producers of ancillary products
such as fertilizers and hydroponic lights to branding agencies, these
individuals are looking for ways to capitalize on potentially lucrative
business opportunities tied to this nascent industry.

The rush to capitalize on an industry that is projected to exceed $10
billion by 2018, according to The ArcView Group, a network of cannabis
industry investors, has created excitement among entrepreneurs, real
estate owners, investors, and even municipalities, cognizant of the
attractive potential tax revenues.

Conversely, the rapid formation of these new canna-businesses has also
shined a bright light on the inherent challenges associated with
operating in both this highly regulated and scrutinized space, where
state and federal laws differ.

The state-by-state patchwork of regulations has created an opportunity
for entrepreneurs' to capitalize on the strong fundamentals driving the
demand for properties in the markets that are designated for licensed
marijuana operations.

Whether it is a retail store front or a warehouse, what all of these
canna-businesses have in common is that they need real estate and
capital to operate. This in turn has created a unique opportunity to
provide property and financing olutions.

When you strip away all the excitement around these opportunities, a key
factor in the viability of most cannabis-based businesses will be
identifying, securing and retrofitting the real estate in order to
operate successfully.

For instance, the demand for property in Denver alone - which permits
both medicinal and recreational marijuana use - is staggering.
Currently, marijuana cultivation and manufacturing facilities occupy
roughly 4.5 million square feet in Denver, according to commercial real
estate information provider Xceligent Inc. This number is expected to
grow steadily with continued investments in additional grow operations.

While the demand for space is high, it is well documented that many of
these canna-businesses have limited access to capital as the traditional
bank accounts, loans, and lines of credit are unavailable to them.

Limited access to funding has made it difficult for these budding
companies to acquire buildings necessary to operate or pay the 30 to 40
percent premium, which is being driven by the current supply/demand
dynamics and nature of the business to lease space in which to operate.

In addition to simply being able to afford space to operate, another
unique challenge these businesses face is finding properties zoned for
the licensed marijuana activities. Simply identifying a suitable
property with the appropriate zoning oftentimes is not enough. The
property often needs to be significantly rehabilitated in order to meet
stringent state and city guidelines - adding to costs.

The aforementioned challenges create a major gap that needs to be filled
for the licensed marijuana industry to realize its potential. And here
is where respected real estate and financing specialists can pool their
expertise to fill this gap, effectively serving as "canna-fund"
companies.

Canna-fund companies that are well capitalized, understand the nuances
of real estate and are familiar with unique requirements for
marijuana-based businesses are able to offer ganjapreneurs appropriately
zoned and rehabilitated real estate, along with funding to enable them
to lease or purchase their property.

For instance, providing attractive terms on sale-and-leaseback financing
arrangements with tenant purchase options provides flexibility for the
tenant long-term, while efficiently capitalizing their growth and
operations.

In turn, canna-fund companies may realize a steady stream of cash flow
if the financing arrangements are prudently underwritten.

By providing real estate and capital to qualified canna-businesses,
these undercapitalized organizations will have the resources to become
financially viable and liquid, resulting in potentially lucrative
long-term relationships for everyone.

This is a pivotal time for the marijuana industry - and a groundbreaking
opportunity for canna-fund companies.

As laws change, the demand for expertise to make these canna-businesses
viable will only increase. Canna-fund companies - or those with a keen
vision as to what the future holds - can effectively position themselves
as go-to partners for growth and success.

About Cannabis-Rx, Inc.

Cannabis-Rx (OTCQB: CANA) is a real estate company focused on
opportunistically acquiring, selling/leasing real estate, and assisting
in the growth of the cannabis industry specific to real estate and
financing in states where it is licensed or permitted for medicinal
and/or recreational purposes. In addition to strategically purchasing
properties at a significant discount to replacement cost and
rehabilitating the assets to enhance their value, the Company provides
licensed cannabis-based businesses with capital and real estate
opportunities to advance their growth objectives. Cannabis-Rx also plans
to offer consulting services to licensed cannabis growers and operators.
The Company does not, nor does it intend to, grow, distribute or sell
cannabis. For additional information, please visit www.cannabis-rx.co